I used 230Mb large Ubuntu OS image from ICPH, tempalte name "ubuntu-10.04-minimal_10.04_i386-resolvgoogle" (or without resolvgoogle)

After it is applied on the VPS and running (VNC connected), it is using:

20Mb RAM
364Mb HDD

There is no webbrowser and its quite useless install

How this VNC+x-window-manager desktop was installed:

# apt-get install vnc4server
# vncserver

Then login via an VNC client yourserverip:1

After firefox web browser is installed (apt-get install firefox) and http://internetlifeforum.com/ webpage launched:
225Mb RAM
765Mb HDD

Start VNCServer on boot? (alas for me did not worked , and i tried various methods)